The child education and health ethnic inequality consequences of climate shocks in Vietnam

Abstract

This paper provides a new explanation for ethnic disparities in education and health in Vietnam by studying the relationship between frequent, small-scale adverse rainfall shocks and child human capital. Exploiting plausibly random year-to-year variation in weather data that are linked to a longitudinal household- and individual-level dataset over the period 2008–2017, I find that excess rainfall during the annual typhoon season results in lower child subjective health status and school enrollment, with disproportionate effects on children of ethnic minorities. The negative lagged effects on education are concentrated in children at primary school start age, suggesting delaying children’s school entry is a shock–coping strategy for poor ethnic minority households, albeit with potentially big negative long-run effect on their child lifetime earnings. Estimates suggest that rainfall shocks can explain approximately 28% of the observed ethnic gap in enrollment rates of children age 16–18 in the sample during the study period, and most is due to heterogeneous effects of rainfall shocks among ethnic groups, not differences in exposure to rainfall shocks.